Adani Enterprises, the Adani Group firm which has seen its market share plummet in recent weeks following a series of allegations leveled by short-seller Hindenburg Research is expected to announce its December quarter results today.
What Happened? Adani Group’s flagship company, Adani Enterprises, will release its financial results for the third quarter of the 2023 financial year later today with a healthy set of numbers expected to lift investor confidence.
The company has been in the spotlight since Jan. 24 when US-based Hindenburg Research released a report stating that the conglomerate’s shares are overvalued. It added that the group has manipulated the stock price by up to 85%.
Since then, the valuation of Adani Enterprises has halved with analysts failing to successfully pinpoint to a fair value range for the stock.
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The company has also had to abruptly call off a record ₹20,000 crore share sale, a day after the FPO was fully subscribed, following a meltdown in its stock and bond prices.
That said, if the last three quarters’ financials are anything to go by, the company’s Q3 FY23 print could offer a much-needed boost for investors.
From a loss of ₹36.46 crore in Q3FY22, the company recorded a profit of ₹226.7 crore in Q4FY22. In the following quarter, Q1FY23, the net profit rose to ₹442.94 crore. In Q2FY23, the net profit rose at a slower pace to ₹469.20 crore.
The main reason for the jump in profit was the increasing net sales. From ₹8,059 crore in Q3FY22, sales figures rose to ₹8,807.88 crore in Q4FY22. In Q1FY23, this jumped almost 2.5 times to ₹20,318.47 crore. In the previous quarter, Q2FY23, the net sales stood at ₹22,136.67 crore.
It is also worth noting that the Adani Group has halved its revenue growth target and plans to hold out on fresh capital expenditure in an effort to raise investor confidence in the wake of a massive stock plunge, per a Bloomberg report.
The group has reduced its revenue growth target to 15-20% for the next financial year, from what was earlier targeted at 40%.
Price Action: Adani Enterprises stock was trading 4.61% lower at ₹1,638.60 on Tuesday shortly after markets opened for trading.
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